Cape Carancahua
   Property Owners’ Association, Inc.

                                               2903 West Bayshore Drive
                                                Palacios, TX 77465-1469



Resolution Adopting Records Production

Resolution Adopting Payment Plan

Resolution Adopting Retention Policy

                                    
                                    POLICIES

Refiled and Updated February 24, 2017
Instrument #2017-00540
Recorded in Jackson County Official Public Records, V: 530, P 549

CONSTRUCTION PERMIT POLICY
Revised 1/1/12

Any and all new construction, as well as exterior modifications to existing structures, fences, driveways, culverts,
etc., must be permitted by the Architectural Control Committee.  A culvert must be in place before any construction
is begun.  No permit will be issued to any property owner in violation of Cape Carancahua policies or deed
restrictions.

Applicable fees and properly executed application forms must be received in the CCPOA office 72 hours before the
Architectural Control Committee meeting at which it will be considered.  A permit fee will apply to any construction
requiring vehicles or equipment that weighs in excess of 36 tons inside the Cape regardless of whether or not the
construction permit requires a fee.  A non-compliance fee may be charged if construction is begun or material is
delivered without a permit having been issued and placed conspicuously on the property. 

BUILDING PERMIT FEES
Revised 4-10-13


*New Home Construction $625.00
*New Manufactured Home $625.00
Addition to existing house $  50.00
Bulkhead    $310.00
Bulkhead Replacement  $310.00
Carport $  50.00
Concrete Slab  $  50.00
Culvert           $  50.00
Deck           $  50.00
Driveway           $  50.00
Garage                 $  50.00
In-ground Pool           $310.00
Pier           $185.00
Septic System           $125.00
Storage Building                     $  50.00


*Permit fee includes: septic system, garage, carport, culvert, and deck if plans for such items are included with
original application and shown on attached plat drawing.

PROCEDURE TO ACQUIRE A CONSTRUCTION PERMIT
Effective 9/17/09  - Revised 1/1/12

No permit will be issued to any property owner in violation of Cape Carancahua policies or deed restrictions.

Any and all new construction, as well as exterior modifications to existing structures, fences, driveways, culverts,
etc., must be permitted by the Architectural Control Committee. 

A permit application for the desired construction must be submitted to the Cape Carancahua POA office 72 hours in
advance of a meeting by the Architectural Control Committee.  The permit application must include the property’s
911 address, the property owner’s name and mailing address, the lot(s) number.  It must be accompanied by the
required fee and a detailed drawing with dimensions showing the property lines and easements, specifications and
details about proposed construction, and any and all fences, structures, driveways, culverts, septic systems, water
meter, electric pole, etc. 

This must be done prior to filing for a permit in the office.  If sufficient information is not included, the application will
not be considered by the Architectural Control Committee.  This may cause delays in starting the construction.  A
culvert must be in place before any construction is begun. 

If ANY construction is begun without a permit having been issued and placed conspicuously on the property, non-
compliance fees may be assessed and the matter may be turned over to the Cape’s attorney for legal remedy.  The
property owner will be charged attorney fees, court costs, and any other applicable fees.

A permit fee will apply to any construction requiring vehicles or equipment that weigh in excess of 36 tons inside the
Cape.
DRAINAGE DITCH USE POLICY
Revised 2/12/17

In order to maintain the integrity of the Cape Carancahua’s drainage system, vehicles and equipment (other than
lawn mowers) may not be parked in or driven across drainage ditches.  Non-compliance fees may be assessed to
property owners who violate this policy. Such fees will be determined by the Board of Directors for each incident. 
Property owners are responsible for violations by their guests.

EMERGENCY CALL-OUT POLICY
Revised 1/1/12

After-hours emergency calls to Cape personnel may result in the employee’s call-out time being charged to the
account of the property owner responsible for the need of service.  While the CCPOA is most interested in helping
our members in distress, CCPOA personnel are paid a premium for after-hours calls.

Emergency calls to address CCPOA equipment malfunction or problems will not incur charges.

FEES AND CHARGES
Revised 12-14-16

Property owners’ annual assessment fees are due by March 15th of each year.  Permit fees are due at the time the
application is submitted.  All other fees and charges are due within 30 days of the date they are assessed. 
Accounts will be considered delinquent if not paid in full within that 30-day period.  A late fee will be added to
delinquent accounts each month.  A one percent (1%) finance charge will be added to delinquent accounts each
month.  Gate access devices assigned to the holders of delinquent accounts may be deactivated.   Delinquent
accounts may be assigned to the Cape’s attorney or a collection agency. 

Schedule of Fees

After-hours Employee Call-out $ $50
Annual Maintenance Fee $135 per lot
Building Permit $    0 to $625 depending on construction
Certified Document Fee $  40
Community Center Rental $250 plus $500 refundable cleaning deposit
Meeting Room Rental $  50 plus $50 refundable cleaning deposit
Copy Service $    0.10 per page
Extended RV Permit, 60-day $  10
Facsimile Service $    1 per page
Finance Charge on accounts 30 days past due 12% per annum
Gate Access, Reactivation of Denied Access $  15
Gate Card, new or additional           $  25
Gate Card, replacement $  15
Gate Electronic Transmitter $  60 + tax
Gate Transmitter Replacement Battery $    8 + tax
Late Fee on accounts 30 days past due $  20 per month
Lien Fee Amount of Attorney’s fee
Lot Clean-up (brush/weed clearing) $  70 minimum
Map of Cape Carancahua, 24”x36” $    8 + TAX
Mowing Charge, Vacant Lot $  45+ tax
Mowing Charge, Vacant Lot, Annual, paid in advance $275 + tax
Mowing Charge, residential $  70 or actual costs, first lot; $45 add’l + tax
Non-Compliance Fee $  45/incident or/day or actual costs
Pavilion Rental           $  50 refundable cleaning deposit
Pool Pass $  75 per year
Property Transfer Fee $  50 per transaction
Returned Check Fee $  25
Unlicensed Vehicle Permit $  10


OPEN FIRE POLICY
Revised 1/1/12


Open fires are prohibited in Cape Carancahua with the exception of those contained in personal cooking equipment or
inside closed or screened outdoor burning receptacles.  A violation of this policy may incur non-compliance fees. 
Such fees will be determined by the Board of Directors for each incident.  Property owners are responsible for
violations by their guests.

GATE ACCESS POLICY - FRONT GATE
Revised 1/1/12

Property owners who do not have a residence in Cape Carancahua are allowed two (2) gate access devices with no
annual fee. No additional gate access devices are allowed.

Property owners who have a residential dwelling in Cape Carancahua are allowed two (2) gate access devices with
no annual fee and may obtain up to six (6) additional access devices for a total of eight (8).  An annual fee will be
charged for each device over two.

Gate access may be denied when a property owner’s account is delinquent.  A fee may be charged to reactivate
devices that have been disabled for delinquent account.

GATE POLICY - CONSTRUCTION GATE
                                                          Revised 1/1/12

Property owners are responsible for providing this information to contractors, sub-contractors, and delivery
drivers. Property owners are responsible for violations by contractors, sub-contractors, and delivery drivers. 
Violations will be subject to non-compliance fees.

No vehicle weighing in excess of 5 tons (10,000 pounds) will be admitted through the main entrance gate to Cape
Carancahua.  All such vehicles must use the east (construction) gate and use truck routes whenever possible or, if
deviation from the truck route is necessary, such vehicles must use gravel roads whenever possible.

Access into and out of Cape Carancahua via the east gate is by use of a keypad with a number code that is
changed periodically. The code will be available from the office. The gate closes automatically after a vehicle passes
through.

GATE POLICY - NON-RESIDENT ENTRY
Revised 1/1/12

Gate cards may be issued to non-resident contractors and persons doing business inside Cape Carancahua after
approval by the Board of Directors.  Applications for such cards must be signed by an authorized person and must be
accompanied by the appropriate fee. 

GATE POLICY - GATE DAMAGE
Revised 1/1/12

Cape Carancahua Property Owners’ Association, Inc., will reimburse a reasonable amount for damage done by gate
malfunction with the following stipulations:

1.  Damage must be reported to the office within one hour of the incident.  Cape personnel will
photographically record the damage or make a visual inspection.
2.  If damage occurs while the office is closed, it must be reported the next working day.
3.  A written description of the incident must be submitted to the office within 48 hours. This document
must be signed and dated.
4.  Two bids for repair must be submitted to the office within 14 days of the incident.

Motorized Vehicle Policy
Adopted December 9, 2015
(This policy replaces the Unlicensed Vehicle Policy revised 1/1/12)

Approved Unlicensed Vehicles

No person shall operate an unlicensed motor vehicle on Cape Carancahua roadways without a valid driver
license.  A motor vehicle is defined as any vehicle whose primary power source is a motor of any type
(electric, gasoline, or diesel) and whose top speed exceeds 5 miles per hour, and is meant to be operated
as a means of transport and not as a toy.
All unlicensed motor vehicles, which include, but are not limited to golf carts, all-terrain vehicles, utility
vehicles, etc., must have a Cape Carancahua identification decal displayed in a visible location on the
front and rear of the vehicle.
All unlicensed motor vehicles operated during the period from one-half hour after sunset to one-half hour
before sunrise and at any time when visibility is reduced because of insufficient light or atmospheric
conditions must display  lighted head lights and tail lights.
The use of unlicensed motor vehicles in the Cape Carancahua Subdivision must comply with Texas
Transportation Code §663.032, in that if a person younger than 14 years of age is operating the vehicle
the person must be accompanied by and be under the direct supervision of the person’s parent or
guardian or an adult who is authorized by the person’s parent or guardian.
A person may not operate an unlicensed motor vehicle within the Cape Carancahua Subdivision in a
careless or reckless manner that endangers, injures or damages any person or property.
A Person may not carry a passenger on an unlicensed motor vehicle operated in the Cape Carancahua
Subdivision unless the unlicensed motor vehicle is designed by the manufacturer to transport a passenger.

II. Unapproved Unlicensed Vehicle

Go-carts, dirt bikes, and mini-bikes are not allowed on Cape Carancahua roadways or public spaces
except for officially-sponsored parade events.

III. Licensed Vehicles

All automobiles and pickups driven on Cape Carancahua roadways must be properly registered, licensed,
insured, and operated by a licensed driver.


MOWING POLICY
Revised 1/1/12

In accordance with CCPOA Restrictions, Conditions, and Covenants, all grass and weeds will be cut to maintain a
sanitary, healthful, and attractive environment.  This maintenance will be carried out by CCPOA employees or agents
as necessary.  Property owners will be billed for this service.  Property owners who maintain their property will not
be billed.  Property owners will be offered the opportunity to pay for 12 month’s mowing and maintenance service in
advance at a discounted rate.

Sections 1 and 5 will be mowed and maintained during the first full week of each month as necessary.  Section 2 will
be mowed and maintained during the second full week of each month as necessary.
Section 3 will be mowed and maintained during the third full week of each month as necessary.
Section 4 will be mowed and maintained during the fourth full week of each month as necessary.

NON-COMPLIANCE FEE POLICY
Effective 1/1/12

Confirmed and documented incidents of any violation of Cape Carancahua rules, policies, bylaws, or Restrictions,
Conditions, and Covenants may result in non-compliance fees being charged to the offending property owners’
account.

PET POLICY
Effective 11/1/09

1.  Property owners must maintain control of their animals at all times.
2.  Pets not confined to their owners’ property must be on a leash.
3.  No animals are permitted inside swimming pool fences.
4.  Property owners are responsible for damage caused by their pets.
5.  Property owners are responsible for disturbances caused by their pets.
6.  Property owners are responsible for pets belonging to their guests.

POOL POLICY - Private Residential Pools
Revised 1/1/12

Above-ground private swimming pools and spas are limited to 500 gallon capacity.

POOL POLICY - CCPOA Swimming Pools
Revised 2/12/17

Property owners may purchase one or two access devices to Cape Carancahua swimming pools for an annual fee. 
Property owners are responsible for the actions of their guests.   Pool access may be denied by the CCPOA Board of
Directors and non-compliance fees may be assessed for violation of pool rules.

Cape Carancahua Pool Rules

NO LIFEGUARD ON DUTY - NO DIVING - CCPOA IS NOT LIABLE FOR ACCIDENTS

No more than 6 persons admitted per card
Children under 12 must be accompanied by an adult
All non-swimmers must wear flotation devices
No glass containers.  No food 
No pets inside pool enclosure
No running; no diving or jumping from pool furniture
No public drunkenness, lewdness, or abusive language
Cut-offs must be hemmed
Disabling the locking mechanism on a pool gate will result in non-compliance fees being assessed
and/or suspension of pool privileges.

Members are responsible for their guests and will be charged for damage and/or pool cleaning resulting from
violations.  Violation of Pool Rules can result in immediate removal from the pool, loss of future pool privileges, and
non-compliance fees.

POSTAL SERVICE RECEPTACLE POLICY
September 21, 2012

Cape Carancahua property owners can receive U. S. Mail by applying to the U. S. Postal Service Postmaster at
Palacios, Texas.  The Post Master will assign a locked postal service box at the mail kiosk provided by Cape
Carancahua Property Owners’ Association, Inc.  Residential postal delivery receptacles are not allowed in Cape
Carancahua.

RENTAL POLICY
Revised 1/1/12

1.  No dwelling in Cape Carancahua may be rented or leased to more than one family. 
2.  No dwelling may be rented or leased for a period of less than four (4) consecutive months.
3.  All tenants must register with the CCPOA office within ten days of the effective date of the lease or
     rental agreement.  It is the property owner’s responsibility to ensure that tenants register.
5.  All tenants must agree to abide by CCPOA Bylaws; Policies; and Restrictions, Conditions & Covenants.
6.  Property owners are responsible for the actions of their renters and lessees.  Property owners
     are responsible for informing tenants about CCPOA restrictions and policies.  Any non-compliance fee
     incurred for violations will be charged to the property owner’s account.

RECREATIONAL VEHICLE POLICY
Revised 1/1/12

Property owners who have a residence in Cape Carancahua are not subject to this policy and may store their
personally-owned recreational vehicles on the lot on which their residence is located or on an adjoining lot owned by
them.

1.  No recreational vehicle may be moved onto any lot that does not have a culvert for vehicular access
     and a hardscape pad for parking.
2.  A recreational vehicle may be brought inside Cape Carancahua for a period of no more than fourteen
     (14) consecutive days out of any thirty-day period unless an extended permit has been obtained by
     the property owner.
3.  Each recreational vehicle must be removed from Cape Carancahua for a period of at least sixteen (16)
     consecutive days before it can be brought back inside. No other recreational vehicle may be placed on  
     the property owners’ lot(s) during that sixteen (16) day period.

SPECIAL ASSESSMENT POLICY
Effective May 6, 2012

In addition to regular assessments, the following items will be subject to special assessments in appropriate amounts
determined by the Board of Directors:

Damage to Association property or equipment
Facility Use - including, but not limited to office space, Community Center, Meeting Room (Library), and Pavilion
Mowing -as required by Article 1.09 of the Restrictions, Conditions and Covenants of Cape Carancahua Subdivision
Non-Compliance - violation of bylaws, restrictions, conditions, covenants, policies, rules, guidelines, & regulations
Office Services - including, but not limited to, document and records reproduction, research time, certified document
production, finance charge on past due account, late fee on past due account, facsimile transmission, filing fees, Notary
Public services, property transfer, and returned check
Permit, Building -  including, but not limited to the following: Addition to House, Bulkhead, Carport, Concrete Slab, Culvert,
Deck, Driveway, Garage, Mobile Home, New Home, Pier, Pool, Septic System, Storage Building,
Permit, Unlicensed Vehicle
Permit, Recreational Vehicle Extended Stay
Property Clean-up - as required by Article 1.09 of the Restrictions, Conditions and Covenants of Cape Carancahua
Subdivision)
Subdivision Gate Access - card or electronic transmitter
Swimming Pool Access

Other Special Assessments promulgated and approved by the Cape Carancahua Property Owners’ Association Board
of Directors.

STORM SHUTTER POLICY
Effective 9/11/09

Storm shutters and protective window coverings may be installed for a period of no more than fourteen (14)
consecutive days unless the material used is fitted to the opening and painted attractively to match or compliment
the exterior of the dwelling to maintain the harmony and aesthetics of the Cape.  Exceptions to this policy may be
granted in the event of a natural disaster.

TRANSFER OF PROPERTY POLICY
Effective July 9, 2004 by action of Cape Carancahua BOD
Amended October 12, 2007 by action of Cape Carancahua BOD
Amended December 1, 2011 by action of Cape Carancahua BOD
Amended February 12, 2017 by action of Cape Carancahua BOD

The purchaser of any property in Sections 1, 2, 3, 4, or 5 and the Business Park in Cape Carancahua is responsible
for paying a transfer fee of $50.00 to the Cape Carancahua Property Owners Association.   A “property” is defined
as one or more lots recorded on a single deed. 

The purchaser of any property in Sections 1, 2, 3, 4, or 5 and the Business Park in Cape Carancahua is responsible
for providing a copy of the recorded deed to the Association office.

The seller of any property in Sections 1, 2, 3, 4, or 5 and the Business Park in Cape Carancahua will provide written
notice to the purchaser that reads substantially similar to the following:

“NOTICE OF MEMBERSHIP IN CAPE CARANCAHUA PROPERTY OWNERS’ ASSOCIATION,                                             
                                                  ~~~

RESOLUTION ADOPTING RECORDS RETENTION POLICY
Filed October 15, 2012
Instrument #2012-86037
Recorded in Jackson County Official Public Records, V: 424, P: 714

Pursuant to Section 209.005(m) of the Texas Property Code, The Cape Carancahua
Property Owners' Association, Inc., he reinafter referred to as "Association", actin g by and
through its Board of Directors, has adopted the following records retention policy, to-wit:
Records of the Association shall be kept on the following schedule:
(1) The certificate of formation, bylaws, restrictive covenants, and all amendments to
the certificate for formation, bylaws and covenants shall be retained permanently.
(2) Financial books and records shall be retained for seven years.
(3) Account records of current owners shall be retained for five years.
(4) Contracts with a term of one year or more shall be retained for four years after the
expiration of the contract term.
(5) Minutes of meetings of the owners and the Board shall be retained for seven years.
(6) Tax returns and audit records shall be retained for seven years.
(7) Emails are not stored or saved electronically by Board Members, Committee
Members, or anyone associated with the Association, including a management
company. In the event that any communication is kept that started as an email.jt
will be printed and kept with the subject it involves. Emails are not kept as a
practice and they are printed as necessary. In the event that an email is printed it
may only contain the final decision or request, and not all pages of communication.

By their signatures below the President and the Secretary of the Association certify that
the foregoing resolution was approved by the Board of Directors of the Association at a duly called meeting of the Board
of Directors at which a quorum of Directors was present, or by
signed unanimous written consent in lieu of a meeting.

PASSED, ADOPTED AND APPROVED on this the 13th day of October, 2012.

                                          The Cape Carancahua Property Owners' Association, Inc.
                                           By: /s/ Craig Brooks, President

ATTEST:
By: /s/ Myrtle Halling, Secretary

                                      ~~~

RESOLUTION ADOPTING RECORDS PRODUCTION AND COPYING POLICY
FOR THE CAPE CARANCAHUA PROPERTY OWNERS' ASSOCIATION, INC.
Filed October 15, 2012
Instrument #2012-86038
Recorded in Jackson County Official Public Records, V: 424, P: 718

Pursuant to Section 209.005(i), Texas Property Code, The Cape Carancahua Property
Owners' Association, Inc., hereinafter referred to as "Association", acting by and through it's
Board of Directors, has adopted the following records production and copying policy to prescribe the costs the
Association will charge for the compilation, production, and reproduction of information requested under Section 209.005
(i), to-wit:
1. Copy Charges
a. The charge for standard paper copies reproduced by means of an office machine
copier or a computer printer if $.10 per page or part of a page. Each side that has
recorded information is considered a page.
b. The charge for oversize copies (e.g.: 11 inches by 17 inches, not including maps
and photographs using specialty paper) shall be $.50 per page.
c. The charge for specialty paper (e.g.: Mylar, blueprint, blueline, map,
photographic) shall be at actual cost.
d. The charge for incoming or outgoing facsimiles is $1.00 per page.
e. The charge for copies made onto a form of electronic media shall be the actual
cost of the supplies used, for example a rewritable CD. Charges in this subsection
are to cover materials onto which information is copied and do not reflect any
additional charges, including labor, that may be associated with a particular
request.
2. Labor Charges for locating, compiling, manipulating data, and reproducing information.
a. The charge for labor costs incurred in processing a request for information is
$15.00 an hour. The labor charge includes the actual time to locate, compile,
manipulate data, and reproduce the requested information.
b. A labor charge shall not be billed in connection with complying with requests that
are for 50 or fewer pages of paper records, unless the documents to be copied are
located in:
(i) Two or more separate buildings that are not physically connected with each other; or
(ii) A remote storage facility.
c. A labor charge shall not be recovered for anytime spent by an attorney, legal
assistant, or any other person who reviews the requested information to determine
whether the Association will raise any exceptions to disclosure of the requested
information.
d. When confidential information is mixed with non-confidential information in the
same page, a labor charge may be recovered for time spent to redact, blackout, or
otherwise obscure confidential information in order to release the nonconfidential
information. A labor charge shall not be made for redacting
confidential information for requests of 50 or fewer pages, unless the request the
documents to be copied are located in:
(i) Two or more separate buildings that are not physically connected
with each other; or
(ii) A remote storage facility.
3. Miscellaneous supplies.
a. The actual cost of miscellaneous supplies, such as labels, boxes, and other
supplies used to produce the requested information, may be added to the total
charge for information.
4. Postal and shipping charges.
a. The Association may add any related postal or shipping expenses which are
necessary to transmit the reproduced information to the requesting party.
5. Advance payment.
a. The Association may require advance payment of the estimated costs of
compilation, production, and reproduction of the requested information. If the
estimated costs are lesser or greater than the actual costs, the Association shall
submit a final invoice to the owner on or before the 30th business day after the
date the information is delivered. If the final invoice includes additional amounts
due from the owner, the additional amounts, if not reimbursed to the Association
before the 30th business day after the date the invoice is sent to the owner, may be
added to the owner's account as an assessment. If the estimated costs exceed the
final invoice amount, the owner is entitled to a refund, and the refund shall be
issued to the owner not later than the 30th business day after the date the invoice is
sent to the owner.

By their signatures below the President and The Secretary of the Association certify that
the foregoing resolution was approved by the Board of Directors of the Association at a duly called meeting of the Board
of Directors at which a quorum of Directors was present, or by
signed, unanimous written consent in lieu of a meeting.

PASSED, ADOPTED AND APPROVED on this the 13 day of October, 2012.
  
                              The Cape Carancahua Property Owners' Association, In
                              By: /s/ Craig Brooks, President

ATTEST:
By:Myrtle Halling, Secretary

                                      ~~~



RESOLUTION ADOPTING PAYMENT PLAN FOR CAPE CARANCAHUA
PROPERTY OWNERS' ASSN., INC.
Filed October 15, 2012
Instrument #2012-86039
Recorded in Jackson County Official Public Records, V:424, P:723

Pursuant to Section 209.0062 of the Texas Property Code, The Property Owners' Association, Inc., hereinafter referred
to as the "Association", acting by and through its Board of Directors, has adopted the following alternative payment policy
to set forth guidelines for a payment plan of assessments and fees, to wit:

WHEREAS, the Association is required under Texas Property Code §209.062 to create
and record an alternative payment schedule for the Association governing the Cape Carancahua Subdivision located in
Jackson County, Texas, in order to establish an alternative payment schedule by which an owner may make partial
payments to the property owners' association for delinquent regular or special assessments or any other amount owed
to the association without accruing additional monetary penalties; and

WHEREAS, the Association has adopted the following alternative payment plan for all
Association dues and fees;

WHEREAS, all terms used herein shall have the same meaning as set forth in the
Restrictions, Conditions, and Covenants and any amendments thereto of Cape Carancahua
Subdivision, filed in the Official Records of Jackson County, Texas, hereinafter referred to as the "Declaration" .

NOW THEREFORE, the Association declares that the following is the alternative
payment plan adopted:

1. The Due Date for all Annual Assessment Fees shall be March 15th of each year. The Due
Date for all Special Assessments shall 30 days after an Owner receives notice of the Special Assessment. The due date
for all other charges shall be the last day of the month in which the invoice or statement is dated unless otherwise
specified in this document.

2. All documents, correspondence, invoices, statements, and notices relating to the charges
shall be mailed to the Owner's address which appears on the books of the Association or to such other address as
designated in writing by the Owner.

3. All payment plans must be in writing, signed by one or more Owners of the property
associated with the delinquent balance, approved by the signature of the President of the
Association or the Association Manager, and provide that the Owner shall pay future
assessments when due, in addition to any arrearage payment due under a payment plan.

4. No monetary penalties shall accrue on balances while a payment plan is in effect, but
reasonable cost associated with administering the plan and interest shall continue to accrue.
Monetary penalties do not include reasonable costs associated with administering the payment plan or interest.

5. Any qualified Owner who owes a delinquent balance of$500.00 or less shall be allowed,
without deliberation by the Board, to pay the balance in three equal consecutive monthly
installments, with the first payment due within the first thirty day period following the approval
of the payment plan.

6. Any qualified Owner who owes a delinquent balance of more than $500.00 shall be
allowed, without deliberation by the Board, to pay the balance by paying twenty-five percent of the balance during the first
thirty day period following the approval of the payment plan, with the remaining delinquent balance to be paid in five equal
consecutive monthly installments.

7. Any Owner may submit a request for a payment plan that does not meet the foregoing
guidelines, along with whatever information they wish the Board to consider, and the Board may approve or disapprove
such payment plan, in its sole discretion; however no payment plan shall exceed eighteen months or be shorter than
three months.

8. The Association reserves the right to refuse to offer a payment plan to an Owner during a
two (2) year period following an Owner's default under a previous payment plan.

9. If an Owner who is not qualified to receive a payment plan asks for a payment plan, the
Board shall be entitled to approve or disapprove a payment plan, in its sole discretion.

10. Payments will be posted by the Association staff in a timely manner. A payment
received by the Association from the Owner shall be applied to the Owner's debt in the following order of priority:
           (1) any delinquent assessment;
           (2) any current assessment;
          (3) any attorney's fees or third party collection costs incurred by the Association
               associated solely with assessments or any other charge that could provide the                  
               basis for foreclosure;
         (4) any attorney's fees incurred by the Association that are not subject to 10 (3) above;
         (5) any fines assessed by the Association; and
        (6) any other amount owed to the Association.

By their signatures below the President and the Secretary of the Association certify that
the foregoing resolution was approved by the Board of Directors of the Association at a duly called meeting of the Board
of Directors at which a quorum of Directors was present, or by
signed, unanimous written consent in lieu of a meeting.

PASSED, ADOPTED AND APPROVED on this the 13th day of October,2012.
    
                           The Cape Carancahua Property Owners' Association, Inc.
                             By: /s/ Craig Brooks, President
ATTEST:
By: /s/ Myrtle Halling, Secrtary